Jim Cramer reveals his 10 investment themes for 2021

Wall Street on Monday labored by means of a tricky day to open the brand new buying and selling yr, which prompted CNBC’s Jim Cramer to interrupt down the highest investing themes he’ll be watching in 2021.

Investors ought to hold secular traits in thoughts as a result of they’re one of the best methods to method a marketwide sell-off, the “Mad Money” host mentioned after the foremost averages all closed down greater than 1%.

“I always fall back on themes. That’s the best way to approach a sell-off, like we had today,” he mentioned. “Themes are very useful if you’ve got some cash stockpiled after last year’s remarkable run.”

After wrapping up 2020 at or close to all-time highs, the three averages declined sharply to open 2021. The Dow Jones Industrial Average fell virtually 383 factors, or 1.25%, to 30,223.89. The S&P 500 and Nasdaq Composite each dropped virtually 1.5%, settling at 3,700.65 and 12,698.45, respectively.

Cramer mentioned a mix of the looming federal elections in Georgia to resolve energy within the Senate, profit-taking, uncertainty in Washington and a troubled coronavirus vaccine rollout within the U.S. contributed to Monday’s marketwide decline.

The decline, he suggests, created reductions in some shares that buyers can benefit from.

“It’s these long-term themes that work the best. You can buy them tomorrow and then you can buy some more if they get knocked around the next day, and the next,” Cramer mentioned. “The great thing about these theme stocks is they all do get cheaper as they go lower.”

Below are 10 themes and corporations Cramer really helpful buyers to look at:

E-commerce

Travel and leisure

Digitization

Cybersecurity

5G

Stimulus

China

Wealth administration

Remote work

Health care

Disclosure: Cramer’s charitable belief owns shares of Apple, CVS Health, Johnson & Johnson, Microsoft, Marvell Technology, Nvidia, Walmart, NortonLifeLock, Mastercard, Goldman Sachs, Salesforce.com, Boeing, Amazon and Costco.

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